That 1% is still way better than what you will pay at an exchange booth at the airport. The booth sets its own exchange rate AND charges a transaction fee. Those places will rob you.

If you can find a card without a transaction fee so much the better, but regardless, an ATM is far and away the best method.

USAA also credits back the ATM fee ("press enter to accept") 3 times a month.

As for credit cards, some merchants will give you the choice of conducting the transaction in USD or the local currency. If you choose dollars, they will use their own exchange rate; if you choose local currency, it will be your bank's exchange rate which is much better.